57% of HNIs buy term at 30-39, demand for Rs 3 cr cover surges: Report

Wealthy Indians are buying term insurance of more than Rs 2 crore as they increasingly make such investments for “pure protection” and less for tax planning, according to data shared by Policybazaar.

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The term insurance market for high-net-worth individuals (HNIs) has grown 45 per cent from 2025 and 100 per cent in the past two years. The broader term market expanded around 50 per cent in two years.

Term insurance, once bought largely for tax planning, is now being treated as a core financial planning tool focused on:

• 
  Income replacement
• 
  Managing lifestyle-linked liabilities
• 
  Inflation-adjusted long-term planning 

Majority of buyers in peak earning years

Policybazaar’s data shows that 57 per cent of HNI buyers fall in the 30–39 age bracket. Specifically:

• 
  30–34 years: 30.2 per cent
• 
  35–39 years: 26.8 per cent
• 
  25–29 years: 17.4 per cent

This suggests affluent individuals are locking in protection during peak income growth years, rather than waiting until later stages of wealth accumulation.

Demand rising for Rs 3 crore-plus insurance cover

The size of cover is also increasing. Bookings for Rs 3 crore term plans have risen 45 per cent year-on-year. On average:

• 
  HNIs opt for an average cover of Rs 2 crore
• 
  Non-HNIs opt for Rs 1 crore cover
• 
  Around 5 per cent of HNIs choose Rs 5 crore-plus policies

In effect, affluent buyers are purchasing roughly double the protection compared to the wider market.

Marriage replaces childbirth as trigger

Marriage has emerged as the primary trigger for term insurance purchases among HNIs, replacing childbirth, which traditionally drove demand. This indicates that protection planning is being aligned earlier with joint financial responsibilities and long-term liabilities.

Salaried HNIs insure more aggressively

Income structure influences cover size. Salaried HNIs opt for an average Rs 2 crore cover, compared with Rs 1.6 crore among self-employed individuals. Salaried earners tend to insure predictable future income streams, while entrepreneurs often factor in business equity and assets.

Tech cities lead demand

Bengaluru accounts for 16 per cent of HNI term demand, followed by Hyderabad (9 per cent), Pune (7 per cent), Mumbai (7 per cent) and Delhi (3 per cent). South India technology hubs together contribute roughly a quarter of demand, underscoring the link between new-economy wealth and structured risk planning.

Varun Agarwal, head of term insurance at Policybazaar, said affluent buyers are increasingly positioning term insurance as the starting point of financial planning. Younger HNIs are opting for higher covers that align with their incomes and liabilities.